Fed Vice Chair Barr Says Regulators Considering Restriction On How Much Banks Can Rely On 'held-to-maturity' Securities Under Liquidity Requirements; Regulators Reviewing Regulatory Treatment Of Certain Types Of Deposits, Including Ones Tied To Venture Capital Or Cryptocurrency Businesses
Portfolio Pulse from Benzinga Newsdesk
Federal Reserve Vice Chair Michael Barr announced that regulators are considering imposing restrictions on how much banks can rely on 'held-to-maturity' securities under liquidity requirements. Additionally, regulators are reviewing the regulatory treatment of certain types of deposits, including those tied to venture capital or cryptocurrency businesses.
May 20, 2024 | 12:59 pm
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The announcement by Fed Vice Chair Barr about potential regulatory changes could impact the broader market, as represented by SPY, due to increased scrutiny on banks' liquidity and certain types of deposits.
The potential restrictions on 'held-to-maturity' securities and review of deposits tied to venture capital and cryptocurrency businesses could create uncertainty in the banking sector, which may negatively impact the broader market represented by SPY.
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